When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. As an experienced professional, I highlight the best stocks to grow your savings: stocks that deliver strong gains. Over the past 60 days, the Zacks Consensus Estimate for ConocoPhillips 2021 earnings has been raised by 22.5%. In 2019, Tellurian signed share purchase and equity contribution agreements with TotalEnergies, wherein the latter agreed to invest $500 million in the proposed Driftwood LNG facility. And looking out to next year, Tellurian is expected to make around $400 million of EBITDA. LNG Believing that transparent markets empower businesses, economies, and communities, Natural Gas Intelligence (NGI) provides natural gas price transparency and key news, insights and data for the North American energy markets. Gunvor Each SPA is for 3 MTPA of LNG over a 10-year period. Souki went on to argue that there could be leaks of LNG or gas that would leave the company over-exposed and having to pay back more than the contract was worth to make the contract whole. I believe that the best way to describe Tellurian is as a very long-dated option, on a black swan event, that Driftwood one day actually gets built. I provide a hand-holding service. It's not just an out-of-the-money option. Sign in to get the best natural gas news and data. Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Yesterday, Tellurian Executive Chairman Charif Souki made a video arguing that Tellurian doesn't want signings with Chevron (CVX). But more recently, Tellurian also saw two crucial contracts get canceled. Not even with an 11.25% coupon. Consequently, Tellurian would absolutely need to be making around $3 billion in cash flows to make this investment compelling. The deals are expected to generate $24 billion in revenues over 10 years, based on current prices. Indeed, domestic natural gas prices fell by nearly 20% to $6 MMBtu. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. These symbols will be available throughout the site during your session. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Now, the visitors are greeted to the sight of boats stuck in a sea of invasive green water hyacinth weed. Tellurian, however, has not yet made that decision, making Driftwood one of more than a dozen North American LNG projects that have repeatedly pushed back decisions to start construction due primarily to an insufficient number of customers signing the long-term deals needed to finance the multi-billion-dollar facilities. Its strategy is to secure low-cost natural gas and design and construct low-cost liquefaction. ISSN 2158-8023 This means that the remaining $6 billion will need to come from equity funding. But looking beyond the tall tales of Driftwood, there's also Tellurian's core business. Dow and X-energy to build U.S. Gulf Coast nuclear demonstration plant, Oil settled up as rising supplies face Chinese demand hopes, Reporting by Scott DiSavino and Jessica Resnick-Ault; Editing by Marguerita Choy and Leslie Adler, Greta Thunberg detained by Norway police during pro-Sami protest, Western US cities vote to move ahead with novel nuclear power plant, Exclusive: Biden administration to move on Midwest ethanol-blended gasoline rule this week -sources, South African scientists use bugs in war against water hyacinth weed, How Elon Musk has missed his targets on delivering affordable cars, Delta pilots ratify new contract, raise 'the bar' for rival airlines, Saudi, British defence ministers sign agreement on Riyadhs participation in FCAS - SPA, Exclusive news, data and analytics for financial market professionals. Tellurian (NYSE:TELL) remains a highly speculative stock. Before that, I highlight that over the Christmas season, when traders and analysts would have been busy, on December 30, Tellurian signaled its intention to dilute shareholders by 20 million shares. Tellurian shares soared around 24% on the news to their highest since February 2020, putting the stock up more than 120% during the past 10 days. Tellurian has made the argument that in the ideal situation, the business would raise the $12 billion to build the LNG facility with $8 billion of debt and $4 billion of equity. Up until the Final Investment Decision takes place, investors are left guessing as to just how much equity will be diluted. I'll address this momentarily. Do Not Sell My Personal Information (CA Residents Only). Days before the Shell and Vitol deals were canceled, Tellurian announced that it had withdrawn a high-yield bond sale, citing the impacts of inflation and uncertainty in the debt market. That would put its interest payments at close to $640 million. Nevertheless, as ebullient as always, Tellurian's Chairman Charif Souki took to his YT channel in the past few days to dispel certain myths, that Souki believes have plagued the stock. Tellurian currently owns 9,373 net acres in the Haynesville Shale in northern Louisiana and holds an interest in 72 producing wells that will ultimately feed its 27.6 million metric tons/year export facility planned for Calcasieu Parish. Hess earnings for 2021 are expected to rise 116.2% year over year. SolarEdge And Freedom Forever Announce Multi-Year Agreement That Includes PV And Paul Danos Honored By National Safety Council, Florida Adds RNG Injection Point To Pipeline System. And not only robust, but stable, and predictable! To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Tellurian is a very volatile stock and not one for the faint-hearted. The definitive agreements are consistent with the terms contemplated by the Heads of Agreement announced on April 3, 2019, and are subject to certain closing conditions, including the final investment decision (FID) to construct Driftwood. Indeed, what can go wrong? Bitcoin, Like the Internet Itself, Could Change Everything. Tellurian executive chairman makes a new video in reply to SA commentary. I have no business relationship with any company whose stock is mentioned in this article. ISSN 1532-1231 Type a symbol or company name. Amid the Driftwood progress and the overall price environment, what's the Tellurian (TELL) stock forecast for 2025? Plus regular stock updates. Please disable your ad-blocker and refresh. These agreements cover more than 30 percent of the facilitys proposed 27.6 mtpa capacity. info@naturalgasintel.com If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. It's not just an out-of-the-money option. Dow and X-energy to build U.S. Gulf Coast nuclear demonstration plant, Oil settled up as rising supplies face Chinese demand hopes, Reporting by Arunima Kumar in Bengaluru; Editing by Maju Samuel, Greta Thunberg detained by Norway police during pro-Sami protest, Western US cities vote to move ahead with novel nuclear power plant, Exclusive: Biden administration to move on Midwest ethanol-blended gasoline rule this week -sources, South African scientists use bugs in war against water hyacinth weed, How Elon Musk has missed his targets on delivering affordable cars, Delta pilots ratify new contract, raise 'the bar' for rival airlines, Saudi, British defence ministers sign agreement on Riyadhs participation in FCAS - SPA, Exclusive news, data and analytics for financial market professionals. Amid a record stretch of U.S. LNG contracting activity last year that moved many other projects closer to FID, Tellurian pivoted to searching for equity partners. Everyone knows the risks. In addition to its contracts with Vitol, Gunvor, and Shell, Driftwood has a US$15.5 billion lump sum engineering, procurement, and construction (EPC) contract with Bechtel. See here for a complete list of exchanges and delays. In August, TELL did a secondary share offering worth $35 million. I am not receiving compensation for it (other than from Seeking Alpha). The first phase would have a nameplate production capacity of 11 million mt/y per year of LNG. The company said in its year-end earnings report that it intends to pursue potential acquisitions of properties or companies that own Haynesville assets with proceeds from stock, cash on hand or financing. (Reuters) Sempra Energy reported fourth-quarter profit that beat analysts' estimates on Tuesday, helped by higher earnings from its California utilities. Total also will purchase about 20 million additional. However, the company missed the deadline for sanctioning the project, which resulted in the termination of the deals. Please. Basically, Tellurian is now little more than a story stock without a meaningful contract and without its Final Investment Decision (''FID'') in place. I believe that anyone reading this knows the spiel well. Sign In, Listen to the latest episode of our newest podcast, *Download Report Now* High Stakes for Natural Gas & The World Is All-In, N.A. Tellurian, email | To get to Final Investment Decision, Tellurian needs to secure additional natural gas assets in the Haynesville shale. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. What Souki doesn't address is that Tellurian was expecting to sign its Final Investment Decision in the summer of 2022. Two-thirds debt to one-third equity. Its stock has gained 80.3% compared with the industrys 10.8% growth. Ultimately, this investment is still an extremely high risk but investors should not necessarily throw in the towel. Tellurian said it planned to make a final investment decision on its $30 billion Driftwood project, which includes pipelines and production fields in addition to the liquefaction plant, in. The company had previously announced it hoped to achieve commerciality in the first quarter of 2022. LNG Insight Now, the visitors are greeted to the sight of boats stuck in a sea of invasive green water hyacinth weed. I wrote this article myself, and it expresses my own opinions. As per usual, Souki took to YT to argue his take. Tellurian Inc. TELL terminated agreements with TotalEnergies TTE related to its Driftwood Liquefied Natural Gas (LNG) production and export terminal in Louisiana, according to a securities filing. Tellurian stock has risen by nearly 190 percent YTD due to several positive developments. Smith believes the market has finally reached an inflection point that would allow Freeport to reach a final investment decision (FID) on the fourth train in early 2023. . You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Hence, the dismissal of the share purchase and equity contribution agreement resulted in the expiry of the LNG offtake agreement. This means that investors simply aren't buying into Souki's vision. | Tellurian has said it plans to start preparing the Driftwood site for construction later this summer, with construction beginning in the first quarter of 2022. read more. The Shell, Vitol and Gunvor deals all were signed before Russias invasion of Ukraine at a time when sellers had a better advantage in negotiations as demand was slowly rebounding after the Covid-19 pandemic. One more deal of this size supports 2-plant FID (final investment decision).". NGI All News Access. "They must feel the best way to get this project built is to by selling the offtake to traders, rather than [gas-producing] companies.". Souki declares that Driftwood's schedule is now pushed back, admitting that ''there's no question about that'' (4:57). Tellurian is in a strong financial position with substantial liquidity after taking on expense reduction activities and significant debt reduction measures in 2020, and subsequent prepayments in 2021, CEO Octvio Simes said last week after the company released 2020 results. The average target price for the stock is $6.34, which implies an upside of nearly 72 percent. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. Earnings I have no business relationship with any company whose stock is mentioned in this article. "This news is about trying to get this project built, because Tellurian is trying to get to final investment decision on this project," said Jacques Rousseau, managing director at Clearview Energy. Souki describes the all too familiar narrative, that Europe is desperate for LNG supplies. But investors crave FID details. Since then, natural gas prices have been on a wild ride. Tellurian needs to raise $12 billion. By using this Site or clicking on "OK", you consent to the use of cookies. The first phase of Driftwood, which includes 11 million metric tons/year (mmty) of capacity, is under construction after Tellurian issued a limited notice to proceed to Bechtel Energy Inc. last year. Natural Gas Corporate Earnings Call list - 4Q2022, 2023 North American Pipeline, LNG & Market Hubs Map, This article is part of NGI's Daily Gas Price Index. But common sense. But does this mean it won't get built at all? Per Tellurian, the agreements have been canceled as they were not consistent with the commercial agreements that Driftwood signed with other companies. Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. The company currently carries a Zack Rank #3 (Hold). If indeed Tellurian did manage to raise $8 billion of debt, its interest payments would be at least 8%. Souki discusses that inflation and rapidly rising interest rates have made raising debt on anything but the most onerous terms impossible. People may receive compensation for some links to products and services on this website. I do all the work of picking the most attractive stocks. Get access to 100,000+ more news articles & industry data. Plus regular stock updates. some value. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. 3/1/2023. Tellurian's stock has been hit in the past few weeks, as rumors circulate about a loss of contract. Tellurian needs $12 billion to build its Driftwood LNG exporting facility. The industry leader for online information for tax, accounting and finance professionals. Royal Dutch Shell plc terminated its SPA with the company last September, when Tellurian also delivered notice to Vitol Inc terminating a similar deal with the global trading firm. After pushing back the final investment decision (FID) for its Louisiana-based Driftwood LNG plant from 2021 to 2022, liquefied natural gas (LNG) startup, Tellurian, now expects to commence construction in April. I argue that this meaningfully improves the bull. JKM THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Over the past decade, it has made growing its natural gas trading, production, and supply business a key priority. Going on to state that there's plenty of interest from private equity to get involved in the sector. Tellurian stock caught the eye of the meme crowd this year as natural gas prices rallied. So is there any hope left for Tellurian? Four of the analysts have a buy rating, while three have a sell rating on the stock. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. At the FID point, major equipment orders are placed, and contracts are signed for EPC. Please. Tellurian Inc.'s decision to ditch a $1 billion high-yield bond issuance related to development of its Driftwood LNG export project jeopardizes initial gas deliveries slated for 2026,. Washington DC | New York | Houston | Pittsburgh | Mexico City Calgary | Chile. $8 billion to come from debt. Tellurian Inc., which continues to work toward a final investment decision on its Driftwood liquefied natural gas (LNG) terminal proposed for Louisiana, plans to acquire additional assets in the Haynesville Shale this year. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. The problem here is that, aside from. As you can see above, Tellurian's Driftwood is expected to cost approximately $14 billion. Infrastructure "This news is about trying to get this project built, because Tellurian is trying to get to final investment decision on this project," said Jacques Rousseau, managing director at Clearview Energy. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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